LXR - SD card not detected / kit read error -not detected V0.37

Fresh build, no shorts, USB detected by windows (7) (Sonic Potions USB Midi).
Tried 4 different cards: 2GB SD, 4GB SDHC, 16GB SDHC, 32GB SDHC, all formated in FAT32.
Used last SD image, unzipped all unto SD card
Upon startup lots of leds light up, but not always the same ones, and sometimes just the OSC + DRUM1 ones.
I get error message "SD Card not detected" followed by "Kit read error not detected".
After only leds OSC + DRUM1 stay lit but no response from any button.
Rotaries and encoder work ok.
If trying to firmware bootloader (v1.2) - SD error.